TL;DR: The Indian government has significantly expanded the legal definition of a 'startup,' doubling the turnover limit to ₹200 crore (₹300 crore for Deep Tech) and extending eligibility for Deep Tech firms to 20 years. This move formally acknowledges the longer R&D cycles of high-tech ventures.
The End of 'Perpetual Childhood'?
Widening the startup safety net is a double-edged sword. By raising the turnover limit to ₹200 crore, the government risks creating a "mid-market trap." Startups might slow down their expansion or use creative accounting to stay under the threshold and retain benefits like Section 80-IAC tax holidays. The goal of a startup is to become a large corporation; the definition should not become a crutch.
Deep Tech Validation
The extension to 20 years for Deep Tech is the most critical move. It recognizes that building a fusion reactor or a semiconductor chip takes longer than building a delivery app. However, the lack of a clear "speculative activity" definition in the new notification could lead to bureaucratic overreach.
Vichaarak Perspective
Warm & Analytical: This is a progressive step toward maturing the ecosystem. Extending the window for Deep Tech acknowledges the reality of 'hard tech' which cannot be rushed. It provides the stability needed for long-term R&D. Snarky/Fun: The government basically just told startups they can stay "teenagers" until they hit ₹200 Cr. It’s like living in your parents’ basement, but the basement is tax-free and the parents are DPIIT.
E-E-A-T+ Analysis
In my observation of regulatory shifts, this is a clear pivot from "quantity" to "quality" support. As @harkirat1892 noted recently, policy must evolve faster than the startups it governs. By including cooperatives, the state is attempting to infuse the agility of startups into the bedrock of India's rural economy.